Quanex Building Products Corporation
(NYSE:NX) (“Quanex” or the “Company”) today announced its results
for the three months ended January 31, 2024.
The Company reported the following selected
financial results:
|
|
|
Three Months Ended January 31, |
($ in millions, except per share data) |
|
|
2024 |
|
2023 |
Net Sales |
|
|
$239.2 |
|
$261.9 |
Gross Margin |
|
|
$51.4 |
|
$51.8 |
Gross Margin % |
|
|
21.5% |
|
19.8% |
Net Income |
|
|
$6.2 |
|
$1.9 |
Diluted EPS |
|
|
$0.19 |
|
$0.06 |
|
|
|
|
|
|
Adjusted Net Income |
|
|
$5.8 |
|
$6.1 |
Adjusted Diluted EPS |
|
|
$0.18 |
|
$0.18 |
Adjusted EBITDA |
|
|
$19.3 |
|
$20.5 |
Adjusted EBITDA Margin % |
|
|
8.1% |
|
7.8% |
|
|
|
|
|
|
Cash Provided by Operating
Activities |
|
|
$3.9 |
|
$3.1 |
Free Cash Flow |
|
|
($5.7) |
|
($4.4) |
(See Non-GAAP Terminology Definitions and Disclaimers section,
Non-GAAP Financial Measure Disclosure table, Selected Segment Data
table and reconciliation tables for additional information)
George Wilson, President and Chief Executive
Officer, stated, “We were able to realize margin expansion on a
consolidated basis for the first quarter of 2024 despite market
volume softness related to normal seasonality combined with ongoing
macroeconomic challenges, and some pricing pressure. Our focus on
generating cash and managing working capital enabled us to pay down
our bank debt by $5 million during the quarter, which is
encouraging considering we have historically been a net borrower
during the first quarter of our fiscal year due to the seasonality
of our business. Our balance sheet remains strong, and we continue
to be positioned well to explore and evaluate both organic and
inorganic growth opportunities.”
First Quarter 2024 Results
Summary
Quanex reported net sales of $239.2 million
during the three months ended January 31, 2024, which represents a
decrease of 8.7% compared to $261.9 million for the same period of
2023. The decrease was largely attributable to softer market demand
and lower pricing in North America. Quanex reported a 3.3% decline
in net sales for the first quarter of 2024 in its North American
Fenestration segment. In its North American Cabinet Components
segment, Quanex reported a decline of 21.1% in net sales for the
first quarter. Excluding foreign exchange impact, the Company
realized a decrease in net sales of 8.4% for the first quarter in
its European Fenestration segment. (See Sales Analysis table for
additional information)
The increase in earnings for the three months
ended January 31, 2024 was mostly attributable to a decline in raw
material costs, a decrease in stock-based compensation expense and
lower interest expense.
Balance Sheet Update
As of January 31, 2024, Quanex had total debt of
$65.2 million ($13.5 million excluding real-estate leases that are
considered “finance” leases under U.S. GAAP) and the Company’s
leverage ratio of Net Debt to LTM Adjusted EBITDA was unchanged at
0.1x (Net Debt free excluding these real-estate leases). As of
January 31, 2024, Quanex’s LTM Adjusted EBITDA was $158.4 million
and LTM Net Income, the most directly comparable GAAP measure, was
$86.8 million. (See Non-GAAP Terminology Definitions
and Disclaimers section, Net Debt Reconciliation table and Last
Twelve Months Adjusted EBITDA Reconciliation table for additional
information)
Outlook
Mr. Wilson commented, “As mentioned on our
December call, we entered this year with a somewhat cautious
outlook for the first half due to the ongoing macroeconomic
challenges, but we remain optimistic that demand for our products
will improve in the second half as consumer confidence is restored
over time. Based on conversations with our customers, recent demand
trends, and the latest macro data, we are now comfortable providing
guidance for fiscal 2024. Overall, on a consolidated basis, we
estimate we will generate net sales of approximately $1.1 billion,
which we expect will yield approximately $145 million to $150
million in Adjusted EBITDA* in fiscal 2024. While the near-term
outlook for our business remains somewhat cautious, our long-term
view has not changed, and we believe the underlying fundamentals
for the residential housing market remain positive.”
*When Quanex provides expectations for Adjusted
EBITDA on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and corresponding
GAAP measures is generally not available without unreasonable
effort. Certain items required for such a reconciliation are
outside of the Company’s control and/or cannot be reasonably
predicted or estimated, such as the provision for income taxes.
Conference Call and Webcast
Information
The Company has also scheduled a conference call
for Friday, March 8, 2024 at 11:00 a.m. ET (10:00 a.m. CT) to
discuss the release. A link to the live audio webcast will be
available on Quanex’s website at http://www.quanex.com in the
Investors section under Presentations & Events.
Participants can pre-register for the conference call using the
following link:
https://register.vevent.com/register/BI8100cd976cdb4a18aa0a5bcef75a89d8
Registered participants will receive an email
containing conference call details for dial-in options. To avoid
delays, it is recommended that participants dial into the
conference call ten minutes ahead of the scheduled start time. A
replay will be available for a limited time on the Company’s
website at http://www.quanex.com in the Investors section under
Presentations & Events.
About Quanex
Quanex is a global manufacturer with core
capabilities and broad applications across various end markets. The
Company currently collaborates and partners with leading OEMs to
provide innovative solutions in the window, door, vinyl fencing,
solar, refrigeration, custom mixing and cabinetry markets.
Looking ahead, Quanex plans to leverage its material science
expertise and process engineering to expand into adjacent
markets.
For more information contact Scott Zuehlke,
Senior Vice President, Chief Financial Officer & Treasurer, at
713-877-5327 or scott.zuehlke@quanex.com.
Non-GAAP Terminology Definitions and
Disclaimers
Adjusted Net Income (defined as net income
further adjusted to exclude purchase price accounting inventory
step-ups, transaction costs, certain severance charges, gain/loss
on the sale of certain fixed assets, restructuring charges, asset
impairment charges, other net adjustments related to foreign
currency transaction gain/loss and effective tax rates reflecting
impacts of adjustments on a with and without basis) and Adjusted
EPS are non-GAAP financial measures that Quanex believes provide a
consistent basis for comparison between periods and more accurately
reflects operational performance, as they are not influenced by
certain income or expense items not affecting ongoing operations.
EBITDA (defined as net income or loss before interest, taxes,
depreciation and amortization and other, net) and Adjusted EBITDA
(defined as EBITDA further adjusted to exclude purchase price
accounting inventory step-ups, transaction costs, certain severance
charges, gain/loss on the sale of certain fixed assets,
restructuring charges and asset impairment charges) are non-GAAP
financial measures that the Company uses to measure operational
performance and assist with financial decision-making. Net
Debt is defined as total debt (outstanding balance on the revolving
credit facility plus financial lease obligations) less cash and
cash equivalents. The leverage ratio of Net Debt to LTM Adjusted
EBITDA is a financial measure that the Company believes is useful
to investors and financial analysts in evaluating Quanex’s
leverage. In addition, with certain limited adjustments, this
leverage ratio is the basis for a key covenant in the Company’s
credit agreement.
Free Cash Flow is a non-GAAP measure calculated
using cash provided by operating activities less capital
expenditures. Quanex uses the Free Cash Flow metric to measure
operational and cash management performance and assist with
financial decision-making. Free Cash Flow is measured before
application of certain contractual commitments (including capital
lease obligations), and accordingly is not a true measure of the
Company’s residual cash flow available for discretionary
expenditures. Quanex believes Free Cash Flow is useful to investors
in understanding and evaluating the Company’s financial and cash
management performance.
Quanex believes that the presented non-GAAP
measures provide a consistent basis for comparison between periods
and will assist investors in understanding the Company’s financial
performance when comparing results to other investment
opportunities. The presented non-GAAP measures may not be the
same as those used by other companies. Quanex does not intend for
this information to be considered in isolation or as a substitute
for other measures prepared in accordance with U.S. GAAP.
Forward Looking Statements
Statements that use the words “estimated,”
“expect,” “could,” “should,” “believe,” “will,” “might,” or similar
words reflecting future expectations or beliefs are forward-looking
statements. The forward-looking statements include, but are not
limited to, the following: impacts from public health issues
(including pandemics, such as the recent COVID-19 pandemic) on the
economy and the demand for Quanex’s products, the Company’s future
operating results, future financial condition, future uses of cash
and other expenditures, expenses and tax rates, expectations
relating to Quanex’s industry, and the Company’s future growth,
including any guidance discussed in this press release. The
statements and guidance set forth in this release are based on
current expectations. Actual results or events may differ
materially from this release. For a complete discussion of factors
that may affect Quanex’s future performance, please refer to the
Company’s Annual Report on Form 10-K for the fiscal year ended
October 31, 2022, and the Company’s Quarterly Reports on Form 10-Q
under the sections entitled “Cautionary Note Regarding
Forward-Looking Statements” and “Risk Factors”. Any forward-looking
statements in this press release are made as of the date hereof,
and Quanex undertakes no obligation to update or revise any
forward-looking statements to reflect new information or
events.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In
thousands, except per share data)(Unaudited) |
|
|
|
Three Months Ended January 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
Net sales |
|
$ |
239,155 |
|
|
$ |
261,916 |
|
Cost of sales |
|
|
187,723 |
|
|
|
210,149 |
|
Selling, general and
administrative |
|
|
32,363 |
|
|
|
36,744 |
|
Depreciation and
amortization |
|
|
11,152 |
|
|
|
10,620 |
|
Operating income |
|
|
7,917 |
|
|
|
4,403 |
|
Interest expense |
|
|
(1,068 |
) |
|
|
(2,259 |
) |
Other, net |
|
|
1,042 |
|
|
|
218 |
|
Income before income
taxes |
|
|
7,891 |
|
|
|
2,362 |
|
Income tax expense |
|
|
(1,642 |
) |
|
|
(453 |
) |
Net income |
|
$ |
6,249 |
|
|
$ |
1,909 |
|
|
|
|
|
|
Earnings per common share,
basic |
|
$ |
0.19 |
|
|
$ |
0.06 |
|
Earnings per common share,
diluted |
|
$ |
0.19 |
|
|
$ |
0.06 |
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
Basic |
|
|
32,825 |
|
|
|
32,951 |
|
Diluted |
|
|
33,043 |
|
|
|
33,137 |
|
|
|
|
|
|
Cash dividends per share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
QUANEX BUILDING PRODUCTS CORPORATION |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
January 31, 2024 |
|
October 31, 2023 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
44,422 |
|
|
$ |
58,474 |
|
Accounts receivable, net |
|
|
80,063 |
|
|
|
97,311 |
|
Inventories |
|
|
107,478 |
|
|
|
97,959 |
|
Income taxes receivable |
|
|
7,642 |
|
|
|
8,298 |
|
Prepaid and other current assets |
|
|
13,390 |
|
|
|
11,558 |
|
Total current assets |
|
|
252,995 |
|
|
|
273,600 |
|
Property, plant and equipment,
net |
|
|
253,681 |
|
|
|
250,664 |
|
Operating lease right-of-use
assets |
|
|
46,370 |
|
|
|
46,620 |
|
Goodwill |
|
|
185,439 |
|
|
|
182,956 |
|
Intangible assets, net |
|
|
72,008 |
|
|
|
74,115 |
|
Other assets |
|
|
2,927 |
|
|
|
3,188 |
|
Total assets |
|
$ |
813,420 |
|
|
$ |
831,143 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
55,106 |
|
|
$ |
74,371 |
|
Accrued liabilities |
|
|
46,478 |
|
|
|
50,319 |
|
Income taxes payable |
|
|
- |
|
|
|
384 |
|
Current maturities of long-term debt |
|
|
2,500 |
|
|
|
2,365 |
|
Current operating lease liabilities |
|
|
7,370 |
|
|
|
7,224 |
|
Total current liabilities |
|
|
111,454 |
|
|
|
134,663 |
|
Long-term debt |
|
|
61,594 |
|
|
|
66,435 |
|
Noncurrent operating lease
liabilities |
|
|
40,084 |
|
|
|
40,361 |
|
Deferred income taxes |
|
|
30,737 |
|
|
|
29,133 |
|
Other liabilities |
|
|
14,522 |
|
|
|
14,997 |
|
Total liabilities |
|
|
258,391 |
|
|
|
285,589 |
|
Stockholders’ equity: |
|
|
|
|
Common stock |
|
|
371 |
|
|
|
372 |
|
Additional paid-in-capital |
|
|
248,715 |
|
|
|
251,576 |
|
Retained earnings |
|
|
412,922 |
|
|
|
409,318 |
|
Accumulated other comprehensive loss |
|
|
(32,060 |
) |
|
|
(38,141 |
) |
Treasury stock at cost |
|
|
(74,919 |
) |
|
|
(77,571 |
) |
Total stockholders’ equity |
|
|
555,029 |
|
|
|
545,554 |
|
Total liabilities and stockholders' equity |
|
$ |
813,420 |
|
|
$ |
831,143 |
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW |
(In thousands) |
(Unaudited) |
|
|
|
|
|
Three Months Ended January 31, |
|
|
2024 |
|
|
|
2023 |
|
Operating
activities: |
|
|
|
Net income |
$ |
6,249 |
|
|
$ |
1,909 |
|
Adjustments to reconcile net income to cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
11,152 |
|
|
|
10,620 |
|
Stock-based compensation |
|
583 |
|
|
|
679 |
|
Deferred income tax |
|
1,136 |
|
|
|
179 |
|
Other, net |
|
1,790 |
|
|
|
1,509 |
|
Changes in assets and liabilities: |
|
|
|
Decrease in accounts receivable |
|
18,147 |
|
|
|
20,502 |
|
(Increase) decrease in inventory |
|
(8,756 |
) |
|
|
645 |
|
Increase in other current assets |
|
(1,680 |
) |
|
|
(1,431 |
) |
Decrease in accounts payable |
|
(19,044 |
) |
|
|
(21,379 |
) |
Decrease in accrued liabilities |
|
(7,181 |
) |
|
|
(12,686 |
) |
Increase in income taxes payable |
|
264 |
|
|
|
536 |
|
Increase in deferred pension benefits |
|
- |
|
|
|
7 |
|
Increase in other long-term liabilities |
|
852 |
|
|
|
1,461 |
|
Other, net |
|
342 |
|
|
|
584 |
|
Cash provided by operating
activities |
|
3,854 |
|
|
|
3,135 |
|
Investing
activities: |
|
|
|
Business acquisition |
|
- |
|
|
|
(92,000 |
) |
Capital expenditures |
|
(9,580 |
) |
|
|
(7,582 |
) |
Proceeds from disposition of capital assets |
|
31 |
|
|
|
98 |
|
Cash used for investing
activities |
|
(9,549 |
) |
|
|
(99,484 |
) |
Financing
activities: |
|
|
|
Borrowings under credit facilities |
|
- |
|
|
|
102,000 |
|
Repayments of credit facility borrowings |
|
(5,000 |
) |
|
|
(15,000 |
) |
Repayments of other long-term debt |
|
(679 |
) |
|
|
(579 |
) |
Common stock dividends paid |
|
(2,645 |
) |
|
|
(2,661 |
) |
Issuance of common stock |
|
400 |
|
|
|
99 |
|
Payroll tax paid to settle shares forfeited upon vesting of
stock |
|
(1,193 |
) |
|
|
(545 |
) |
Cash (used for) provided by
financing activities |
|
(9,117 |
) |
|
|
83,314 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
760 |
|
|
|
997 |
|
Decrease in cash and cash
equivalents |
|
(14,052 |
) |
|
|
(12,038 |
) |
Cash and cash equivalents at
beginning of period |
|
58,474 |
|
|
|
55,093 |
|
Cash and cash equivalents at
end of period |
$ |
44,422 |
|
|
$ |
43,055 |
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS CORPORATIONFREE
CASH FLOW AND NET DEBT RECONCILIATION(In
thousands)(Unaudited) |
|
|
|
|
|
|
|
The following table
reconciles the Company's calculation of Free Cash Flow, a non-GAAP
measure, to its most directly comparable GAAP measure. The Company
defines Free Cash Flow as cash provided by operating activities
less capital expenditures. |
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
Cash provided by operating
activities |
|
|
$3,854 |
|
|
$3,135 |
|
Capital expenditures |
|
|
|
(9,580) |
|
|
|
(7,582) |
|
Free Cash
Flow |
|
|
($5,726) |
|
|
($4,447) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
reconciles the Company's Net Debt which is defined as total debt
principal of the Company plus finance lease obligations minus
cash. |
|
|
|
|
|
|
|
|
|
As of January 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
Revolving credit facility |
|
|
$10,000 |
|
|
$100,000 |
|
Finance lease
obligations(1) |
|
|
|
55,211 |
|
|
|
55,122 |
|
Total debt(2) |
|
|
|
65,211 |
|
|
|
155,122 |
|
Less: Cash and cash
equivalents |
|
|
|
44,422 |
|
|
|
43,055 |
|
Net Debt |
|
|
$20,789 |
|
|
$112,067 |
|
|
|
|
|
|
|
(1) Includes
$51.7 million and $53.2 million in real estate lease liabilities
considered finance leases under U.S. GAAP as of January 31, 2024
and January 31, 2023, respectively. |
(2) Excludes outstanding
letters of credit. |
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONNON-GAAP FINANCIAL MEASURE
DISCLOSURELAST TWELVE MONTHS ADJUSTED EBITDA
RECONCILIATION(In thousands, except per share
data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Last
Twelve Months Adjusted EBITDA |
|
Three Months EndedJanuary 31,
2024 |
|
Three Months EndedOctober 31,
2023 |
|
Three Months EndedJuly 31,
2023 |
|
Three Months EndedApril 30,
2023 |
|
Total |
|
|
Reconciliation |
|
Reconciliation |
|
Reconciliation |
|
Reconciliation |
|
Reconciliation |
Net income as reported |
|
$ |
6,249 |
|
|
$ |
27,382 |
|
|
$ |
31,698 |
|
|
$ |
21,512 |
|
$ |
86,841 |
Income tax expense |
|
|
1,642 |
|
|
|
4,442 |
|
|
|
4,099 |
|
|
|
5,551 |
|
|
15,734 |
Other, net |
|
|
(1,042 |
) |
|
|
6,110 |
|
|
|
(402 |
) |
|
|
29 |
|
|
4,695 |
Interest expense |
|
|
1,068 |
|
|
|
1,565 |
|
|
|
2,068 |
|
|
|
2,244 |
|
|
6,945 |
Depreciation and
amortization |
|
|
11,152 |
|
|
|
11,194 |
|
|
|
10,596 |
|
|
|
10,456 |
|
|
43,398 |
EBITDA |
|
|
19,069 |
|
|
|
50,693 |
|
|
|
48,059 |
|
|
|
39,792 |
|
|
157,613 |
Cost of sales(1) |
|
|
- |
|
|
|
(35 |
) |
|
|
- |
|
|
|
48 |
|
|
13 |
Selling, general and
administrative(1),(2) |
|
|
205 |
|
|
|
109 |
|
|
|
395 |
|
|
|
63 |
|
|
772 |
Adjusted EBITDA |
|
$ |
19,274 |
|
|
$ |
50,767 |
|
|
$ |
48,454 |
|
|
$ |
39,903 |
|
$ |
158,398 |
|
|
|
|
|
|
|
|
|
|
|
(1) Loss on
damage to manufacturing facilities caused by weather. |
(2) Transaction
and advisory fees. |
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS CORPORATION |
NON-GAAP FINANCIAL MEASURE DISCLOSURE |
(In thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Income and Adjusted
EPS |
Three Months EndedJanuary 31,
2024 |
|
Three Months EndedJanuary 31,
2023 |
|
|
|
NetIncome |
|
DilutedEPS |
|
NetIncome |
|
DilutedEPS |
|
Net income as reported |
|
$ |
6,249 |
|
|
$ |
0.19 |
|
|
$ |
1,909 |
|
|
$ |
0.06 |
|
|
Net income reconciling items
from below |
|
|
(435 |
) |
|
$ |
(0.01 |
) |
|
|
4,154 |
|
|
$ |
0.12 |
|
|
Adjusted net income and
adjusted EPS |
|
$ |
5,814 |
|
|
$ |
0.18 |
|
|
$ |
6,063 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA |
|
Three Months EndedJanuary 31,
2024 |
|
Three Months EndedJanuary 31,
2023 |
|
|
|
Reconciliation |
|
|
|
Reconciliation |
|
|
|
Net income as reported |
|
$ |
6,249 |
|
|
|
|
$ |
1,909 |
|
|
|
|
Income tax expense |
|
|
1,642 |
|
|
|
|
|
453 |
|
|
|
|
Other, net |
|
|
(1,042 |
) |
|
|
|
|
(218 |
) |
|
|
|
Interest expense |
|
|
1,068 |
|
|
|
|
|
2,259 |
|
|
|
|
Depreciation and
amortization |
|
|
11,152 |
|
|
|
|
|
10,620 |
|
|
|
|
EBITDA |
|
|
19,069 |
|
|
|
|
|
15,023 |
|
|
|
|
EBITDA reconciling items from
below |
|
|
205 |
|
|
|
|
|
5,448 |
|
|
|
|
Adjusted EBITDA |
|
$ |
19,274 |
|
|
|
|
$ |
20,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
Items |
|
Three Months EndedJanuary 31,
2024 |
|
Three Months EndedJanuary 31,
2023 |
|
|
|
IncomeStatement |
|
ReconcilingItems |
|
IncomeStatement |
|
ReconcilingItems |
|
Net sales |
|
$ |
239,155 |
|
|
$ |
- |
|
|
$ |
261,916 |
|
|
$ |
- |
|
|
Cost of sales |
|
|
187,723 |
|
|
|
- |
|
|
|
210,149 |
|
|
|
- |
|
|
Selling, general and administrative |
|
|
32,363 |
|
|
|
(205 |
) |
(1 |
) |
|
36,744 |
|
|
|
(5,448 |
) |
(1 |
) |
EBITDA |
|
|
19,069 |
|
|
|
205 |
|
|
|
15,023 |
|
|
|
5,448 |
|
|
Depreciation and
amortization |
|
|
11,152 |
|
|
|
- |
|
|
|
10,620 |
|
|
|
- |
|
|
Operating income |
|
|
7,917 |
|
|
|
205 |
|
|
|
4,403 |
|
|
|
5,448 |
|
|
Interest expense |
|
|
(1,068 |
) |
|
|
- |
|
|
|
(2,259 |
) |
|
|
- |
|
|
Other, net |
|
|
1,042 |
|
|
|
(755 |
) |
(2 |
) |
|
218 |
|
|
|
(42 |
) |
(2 |
) |
Income before income
taxes |
|
|
7,891 |
|
|
|
(550 |
) |
|
|
2,362 |
|
|
|
5,406 |
|
|
Income tax expense |
|
|
(1,642 |
) |
|
|
115 |
|
(3 |
) |
|
(453 |
) |
|
|
(1,252 |
) |
(3 |
) |
Net income |
|
$ |
6,249 |
|
|
$ |
(435 |
) |
|
$ |
1,909 |
|
|
$ |
4,154 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.19 |
|
|
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Transaction
and advisory fees. |
|
(2) Pension
settlement refund and foreign currency transaction losses
(gains). |
|
(3) Tax impact of net income
reconciling items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS CORPORATION |
|
SELECTED SEGMENT DATA |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
This table provides
gross margin, operating income (loss), EBITDA, and Adjusted EBITDA
by reportable segment. Non-operating expense and income tax expense
are not allocated to the reportable segments. |
|
|
|
NA Fenestration |
|
EU Fenestration |
|
NA Cabinet Components |
|
UnallocatedCorp & Other |
|
Total |
|
Three months ended
January 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
147,995 |
|
|
$ |
49,437 |
|
|
$ |
43,137 |
|
|
$ |
(1,414 |
) |
|
$ |
239,155 |
|
|
Cost of sales |
|
|
118,368 |
|
|
|
31,703 |
|
|
|
38,743 |
|
|
|
(1,091 |
) |
|
|
187,723 |
|
|
Gross Margin |
|
|
29,627 |
|
|
|
17,734 |
|
|
|
4,394 |
|
|
|
(323 |
) |
|
|
51,432 |
|
|
Gross Margin % |
|
|
20.0 |
% |
|
|
35.9 |
% |
|
|
10.2 |
% |
|
|
|
|
21.5 |
% |
|
Selling, general and administrative(1) |
|
|
15,910 |
|
|
|
7,745 |
|
|
|
5,126 |
|
|
|
3,582 |
|
|
|
32,363 |
|
|
Depreciation and amortization |
|
|
5,475 |
|
|
|
2,558 |
|
|
|
3,065 |
|
|
|
54 |
|
|
|
11,152 |
|
|
Operating income (loss) |
|
|
8,242 |
|
|
|
7,431 |
|
|
|
(3,797 |
) |
|
|
(3,959 |
) |
|
|
7,917 |
|
|
Depreciation and amortization |
|
|
5,475 |
|
|
|
2,558 |
|
|
|
3,065 |
|
|
|
54 |
|
|
|
11,152 |
|
|
EBITDA |
|
|
13,717 |
|
|
|
9,989 |
|
|
|
(732 |
) |
|
|
(3,905 |
) |
|
|
19,069 |
|
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
205 |
|
|
|
205 |
|
|
Adjusted EBITDA |
|
$ |
13,717 |
|
|
$ |
9,989 |
|
|
$ |
(732 |
) |
|
$ |
(3,700 |
) |
|
$ |
19,274 |
|
|
Adjusted EBITDA Margin % |
|
|
9.3 |
% |
|
|
20.2 |
% |
|
|
-1.7 |
% |
|
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
January 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
152,980 |
|
|
$ |
54,952 |
|
|
$ |
54,674 |
|
|
$ |
(690 |
) |
|
$ |
261,916 |
|
|
Cost of sales |
|
|
124,717 |
|
|
|
37,703 |
|
|
|
48,056 |
|
|
|
(327 |
) |
|
|
210,149 |
|
|
Gross Margin |
|
|
28,263 |
|
|
|
17,249 |
|
|
|
6,618 |
|
|
|
(363 |
) |
|
|
51,767 |
|
|
Gross Margin % |
|
|
18.5 |
% |
|
|
31.4 |
% |
|
|
12.1 |
% |
|
|
|
|
19.8 |
% |
|
Selling, general and administrative(1) |
|
|
13,295 |
|
|
|
7,505 |
|
|
|
4,873 |
|
|
|
11,071 |
|
|
|
36,744 |
|
|
Depreciation and amortization |
|
|
5,245 |
|
|
|
2,348 |
|
|
|
2,934 |
|
|
|
93 |
|
|
|
10,620 |
|
|
Operating income (loss) |
|
|
9,723 |
|
|
|
7,396 |
|
|
|
(1,189 |
) |
|
|
(11,527 |
) |
|
|
4,403 |
|
|
Depreciation and amortization |
|
|
5,245 |
|
|
|
2,348 |
|
|
|
2,934 |
|
|
|
93 |
|
|
|
10,620 |
|
|
EBITDA |
|
|
14,968 |
|
|
|
9,744 |
|
|
|
1,745 |
|
|
|
(11,434 |
) |
|
|
15,023 |
|
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,448 |
|
|
|
5,448 |
|
|
Adjusted EBITDA |
|
$ |
14,968 |
|
|
$ |
9,744 |
|
|
$ |
1,745 |
|
|
$ |
(5,986 |
) |
|
$ |
20,471 |
|
|
Adjusted EBITDA Margin % |
|
|
9.8 |
% |
|
|
17.7 |
% |
|
|
3.2 |
% |
|
|
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense of $2.6 million and $4.8 million
as of January 31, 2024 and January 31, 2023, respectively. |
QUANEX BUILDING PRODUCTS CORPORATION |
SALES ANALYSIS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
NA
Fenestration: |
|
|
|
|
United States -
fenestration |
$ |
111,634 |
|
|
$ |
120,767 |
|
|
International -
fenestration |
|
6,144 |
|
|
|
5,127 |
|
|
United States -
non-fenestration |
|
25,791 |
|
|
|
23,066 |
|
|
International -
non-fenestration |
|
4,426 |
|
|
|
4,020 |
|
|
|
$ |
147,995 |
|
|
$ |
152,980 |
|
EU
Fenestration:(1) |
|
|
|
|
International -
fenestration |
$ |
41,751 |
|
|
$ |
42,354 |
|
|
International -
non-fenestration |
|
7,686 |
|
|
|
12,598 |
|
|
|
$ |
49,437 |
|
|
$ |
54,952 |
|
NA Cabinet
Components: |
|
|
|
|
United States -
fenestration |
$ |
3,675 |
|
|
$ |
3,908 |
|
|
United States -
non-fenestration |
|
39,179 |
|
|
|
50,049 |
|
|
International -
non-fenestration |
|
283 |
|
|
|
717 |
|
|
|
$ |
43,137 |
|
|
$ |
54,674 |
|
Unallocated Corporate & Other: |
|
|
|
|
Eliminations |
$ |
(1,414 |
) |
|
$ |
(690 |
) |
|
|
$ |
(1,414 |
) |
|
$ |
(690 |
) |
|
|
|
|
|
Net
Sales |
$ |
239,155 |
|
|
$ |
261,916 |
|
|
|
|
|
|
(1) Reflects an
increase of $1.0 million in revenue associated with foreign
currency exchange rate impacts for the three months ended January
31, 2024. |
Quanex (NYSE:NX)
Historical Stock Chart
From Apr 2024 to May 2024
Quanex (NYSE:NX)
Historical Stock Chart
From May 2023 to May 2024